The correct answer is: C. produces homogeneous products.
A process costing system is a type of accounting system that is used to track the costs of production for a company that produces homogeneous products. Homogeneous products are products that are identical or very similar in terms of their materials, production process, and quality. For example, a company that produces cans of soda would use a process costing system to track the costs of producing each can of soda.
A job costing system is a type of accounting system that is used to track the costs of production for a company that produces heterogeneous products. Heterogeneous products are products that are not identical or very similar in terms of their materials, production process, and quality. For example, a company that builds custom homes would use a job costing system to track the costs of building each home.
A company that produces items by special request of customers would likely use a job costing system, as each item would be unique and would require different materials and production processes. A company that produces homogeneous products would likely use a process costing system, as each product would be identical and would require the same materials and production processes.
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